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McDonald's to pay $3.75 million in first settlement with franchise workers
Source: Reuters
U.S. | Mon Oct 31, 2016 | 11:04am EDT
McDonald's to pay $3.75 million in first settlement with franchise workers
By Daniel Wiessner
McDonald's Corp has agreed to pay $3.75 million to settle a lawsuit claiming it was liable for labor law violations by a California franchisee, marking what lawyers said was the first time the company has settled legal claims by a group of U.S. workers at one of its franchises.
In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald's would pay the workers $1.75 million in back pay and damages and $2 million in legal fees.
The settlement, which must be approved by a federal judge, comes as McDonald's faces claims before two U.S. agencies that it is a "joint employer" of workers at franchise restaurants, a designation that could make the company liable for legal violations by franchisees and require that it bargain with workers who unionize.
McDonald's spokeswoman Terri Hickey said on Monday the company is not a joint employer of franchise workers.
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McDonald's to pay $3.75 million in first settlement with franchise workers
By Daniel Wiessner
McDonald's Corp has agreed to pay $3.75 million to settle a lawsuit claiming it was liable for labor law violations by a California franchisee, marking what lawyers said was the first time the company has settled legal claims by a group of U.S. workers at one of its franchises.
In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald's would pay the workers $1.75 million in back pay and damages and $2 million in legal fees.
The settlement, which must be approved by a federal judge, comes as McDonald's faces claims before two U.S. agencies that it is a "joint employer" of workers at franchise restaurants, a designation that could make the company liable for legal violations by franchisees and require that it bargain with workers who unionize.
McDonald's spokeswoman Terri Hickey said on Monday the company is not a joint employer of franchise workers.
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Read more: http://www.reuters.com/article/us-mcdonalds-settlement-idUSKBN12V1NJ
